Charlotte, North Carolina-based Nucor Corp. has announced plans to build what it calls a state-of-the-art plate mill in the U.S. Midwest. Nucor’s board of directors has approved an investment of $1.35 billion to build the mill, which is expected to be fully operational in 2022 and will be capable of producing 1.2 million tons per year of steel plate products. Nucor’s existing mills are scrap-fed electric arc furnace (EAF) steel mills.
“This investment is consistent with our drive to continue delivering sustainable, profitable growth and superior returns for shareholders,” says John Ferriola, chair, CEO and president of Nucor. “Together with the significant share repurchases completed in 2018, the board’s decision to fund this high-return opportunity demonstrates our commitment to balanced capital allocation. We have a strong foundation to build upon as we advance our goal of leading in every market in which we compete.”
Remarks Leon Topalian, executive vice president of beam and plate products for Nucor, “By building this state-of-the-art plate mill in the Midwest – the largest plate-consuming area in the United States – we will enhance our ability to serve our customers in the region while also furthering our goal of meeting all the steel needs of our customers around the country. We expect to select a site for the new mill early this year. Our team is poised and ready to take the next step in advancing our position in steel plate products.”
The new plate mill will produce what the company calls cut-to-length, coiled, heat-treated and discrete plate ranging from 60 to 160 inches wide, and in gauges from 3/16ths of an inch to 14 inches in thickness. Producing in those dimensions will enable Nucor to supply plate products that the company does not currently offer at its plate mills in North Carolina, Alabama and Texas.
Ferriola credited tariffs put in place by the Trump White House as a factor in its investment. “This administration is taking the decisive and meaningful actions that American manufacturers need to compete on a level playing field,” he comments. “Tax reform, continued improvements to our regulatory approach and strong trade enforcement are giving businesses like ours the confidence to make long-term capital investments here in the United States that create jobs and ensure our success for decades to come.”